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FG suspends licence issuance for new vehicle assembly plants

Engr. Aminu Jajal, DG NADDC
The Federal
Government has suspended issuance of licence to new vehicle assembly plants.

Mr Aminu Jalal, the Director
General of the National Automotive Design and Development Council (NADDC),
disclosed this in a statement in Lagos on Friday.
Jalal said that the action was to
enable the council to consolidate the country’s vehicle assembly operations and
concentrate in developing local content.
He explained that the suspension
did not apply to investment in original equipment manufacturing (OEM), adding
that applicants for OEM license would not be affected.
Jalal said: “The major
objective of the National Automotive Industry Development Plan is to bring back
completely knocked down (CKD) automotive assembly and develop local content.
“NADDC is investing over N5
billion to establish automotive test centres that will ensure that the vehicles
and components meet international safety and environmental standards.
“The response to the policy
so far has exceeded our expectations. The current status of implementation of
the policy is that 14 existing assembly plants started assembling new products
(cars, SUV, buses, pick-up trucks) in 2014.”
The DG listed some of the 14
plants as Volkswagen of Nigeria (VON), Peugeot Automobile Nigeria (PAN),
Innoson Vehicle Manufacturing, ANAMMCO, Leyland-Busan, NTM and Steyr.
According to him, Nissan, VW,
Hyundai, Kia, Honda cars and SUV, Shacman and MAN Trucks, and Ashok-Leyland
buses are now assembled in Nigeria.
“Eleven new companies,
including Century Auto (Toyota), TATA, Coscharis Auto (FORD, Joylong, Dongfeng)
and Dana Motors (Renault) have been given bona-fide manufacturing status and
are on track to start assembly operations this year.
“Our emphasis has now shifted
to the development of automotive local content.
“Sites for automotive
supplier parks in excess of 400 square hectares have been acquired across
Nigeria and effort is ongoing to acquire more.”

Jalal said the council was
evaluating tenders by global consulting firms with experience in the
establishment of industrial parks. 
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